Question

On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept:

Joplin Company Absorption Costing Income Statement For the Month Ended April 30
Sales (4,700 units)			$131,600
Cost of goods sold:
Cost of goods manufactured (5,400 units)	$108,000
Inventory, April 30 (800 units)	(16,000)
Total cost of goods sold			(92,000)
Gross profit			$39,600
Selling and administrative expenses			(22,290)
Operating income			$17,310

If the fixed manufacturing costs were $23,760 and the fixed selling and administrative expenses were $10,920, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.

Joplin Company
Variable Costing Income Statement
For the Month Ended April 30
		$
Variable cost of goods sold:
	$
		$
		$
Fixed costs:
	$
		$

Answer 1

Answers Joplin company Variable costing Income Stalment for the month ended April 30 Amount Amount particular $ 131,600 sales variable cost of goods sold; variable cost of goods manufactured (Nole-1) 849240 (rayco) Inventory, April 30 Cote-a) 71,760) Total variable cost of goods sold 59840 Manufacturing margin (11370) variable selling and administrative Expense Nole-3) 48.470 contribution margin lews: fixed costs :- 23,760 Fixed manufacturing costs Fixed selling and administrative costs 10920 (34,680) Totain Fixed costs $ 13790 Income from operations

Notes (1) - Total manufacteoring pixed manufacturing cost Pariable cost of goods mana factured cost = $108,000 - $23760 = $84,240 Note (Q):- First we have to calculate manufacturing cost per unit Variable cost of goody manufactured units manufactured $84,quo 5400 units = $15.6 800 units X $15.6 * Inventory, April 30 e $ 12,480 Vasliable selling and administrative costs Total selling and administrative costs Fixed selling and admini shative costs = $22,290 - $ 10,920 = $1,370 Thanks.